WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
NYSE:WIT - New York Stock Exchange, Inc. - US97651M1099 - ADR - Currency: USD
Overall WIT gets a fundamental rating of 6 out of 10. We evaluated WIT against 82 industry peers in the IT Services industry. WIT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WIT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WIT was profitable.
WIT had a positive operating cash flow in the past year.
Each year in the past 5 years WIT has been profitable.
WIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WIT (9.32%) is better than 80.77% of its industry peers.
The Return On Equity of WIT (14.35%) is better than 74.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.17%, WIT is in the better half of the industry, outperforming 75.64% of the companies in the same industry.
WIT had an Average Return On Invested Capital over the past 3 years of 11.05%. This is in line with the industry average of 10.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 14.35% | ||
| ROIC | 10.17% |
ROA(3y)10.19%
ROA(5y)11.09%
ROE(3y)15.94%
ROE(5y)16.96%
ROIC(3y)11.05%
ROIC(5y)11.82%
1.3 Margins
Looking at the Profit Margin, with a value of 13.24%, WIT belongs to the top of the industry, outperforming 91.03% of the companies in the same industry.
WIT's Profit Margin has declined in the last couple of years.
WIT has a Operating Margin of 16.28%. This is amongst the best in the industry. WIT outperforms 88.46% of its industry peers.
WIT's Operating Margin has been stable in the last couple of years.
WIT has a worse Gross Margin (30.15%) than 61.54% of its industry peers.
WIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.28% | ||
| PM (TTM) | 13.24% | ||
| GM | 30.15% |
OM growth 3Y-8.03%
OM growth 5Y-1.33%
PM growth 3Y-10.95%
PM growth 5Y-4.35%
GM growth 3Y-2.19%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WIT is destroying value.
Compared to 1 year ago, WIT has less shares outstanding
The number of shares outstanding for WIT has been increased compared to 5 years ago.
The debt/assets ratio for WIT has been reduced compared to a year ago.
2.2 Solvency
WIT has an Altman-Z score of 6.85. This indicates that WIT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WIT (6.85) is better than 79.49% of its industry peers.
WIT has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
WIT has a better Debt to FCF ratio (1.13) than 79.49% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that WIT is not too dependend on debt financing.
The Debt to Equity ratio of WIT (0.23) is better than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 6.85 |
ROIC/WACC0.9
WACC11.24%
2.3 Liquidity
WIT has a Current Ratio of 2.69. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WIT (2.69) is better than 78.21% of its industry peers.
A Quick Ratio of 2.68 indicates that WIT has no problem at all paying its short term obligations.
WIT has a Quick ratio of 2.68. This is in the better half of the industry: WIT outperforms 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
WIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.15%, which is quite good.
WIT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.73% yearly.
WIT shows a decrease in Revenue. In the last year, the revenue decreased by -0.80%.
The Revenue has been growing by 8.91% on average over the past years. This is quite good.
EPS 1Y (TTM)13.15%
EPS 3Y2.82%
EPS 5Y6.73%
EPS Q2Q%24.27%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y13.16%
Revenue growth 5Y8.91%
Sales Q2Q%0.51%
3.2 Future
The Earnings Per Share is expected to grow by 11.67% on average over the next years. This is quite good.
Based on estimates for the next years, WIT will show a small growth in Revenue. The Revenue will grow by 5.49% on average per year.
EPS Next Y21.53%
EPS Next 2Y13.87%
EPS Next 3Y12.35%
EPS Next 5Y11.67%
Revenue Next Year-0.62%
Revenue Next 2Y2.66%
Revenue Next 3Y4.36%
Revenue Next 5Y5.49%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WIT is valuated rather expensively with a Price/Earnings ratio of 24.86.
65.38% of the companies in the same industry are more expensive than WIT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, WIT is valued at the same level.
A Price/Forward Earnings ratio of 22.38 indicates a rather expensive valuation of WIT.
66.67% of the companies in the same industry are more expensive than WIT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, WIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 22.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIT is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
78.21% of the companies in the same industry are more expensive than WIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.39 | ||
| EV/EBITDA | 13.89 |
4.3 Compensation for Growth
WIT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WIT has a very decent profitability rating, which may justify a higher PE ratio.
WIT's earnings are expected to grow with 12.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)3.69
EPS Next 2Y13.87%
EPS Next 3Y12.35%
5. Dividend
5.1 Amount
WIT has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.96, WIT pays a better dividend. On top of this WIT pays more dividend than 89.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, WIT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of WIT decreases each year by -11.63%.
WIT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WIT pays out 4.44% of its income as dividend. This is a sustainable payout ratio.
DP4.44%
EPS Next 2Y13.87%
EPS Next 3Y12.35%
3.48
-0.16 (-4.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners13.6%
Inst Owner Change94.62%
Ins Owners62.43%
Ins Owner ChangeN/A
Market Cap36.40B
Analysts53.33
Price Target3.52 (1.15%)
Short Float %1.71%
Short Ratio10.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.49
Dividend Growth(5Y)-11.63%
DP4.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.49%
Min EPS beat(2)-1.47%
Max EPS beat(2)4.44%
EPS beat(4)1
Avg EPS beat(4)0.33%
Min EPS beat(4)-1.47%
Max EPS beat(4)4.44%
EPS beat(8)2
Avg EPS beat(8)-2.5%
EPS beat(12)2
Avg EPS beat(12)-4.29%
EPS beat(16)5
Avg EPS beat(16)-1.81%
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)-2.47%
Revenue beat(8)0
Avg Revenue beat(8)-3.39%
Revenue beat(12)0
Avg Revenue beat(12)-3.11%
Revenue beat(16)0
Avg Revenue beat(16)-2.66%
PT rev (1m)8.53%
PT rev (3m)-45.56%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-44.57%
EPS NY rev (1m)4.09%
EPS NY rev (3m)-47.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 22.38 | ||
| P/S | 3.55 | ||
| P/FCF | 18.39 | ||
| P/OCF | 17.25 | ||
| P/B | 3.85 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 13.89 |
EPS(TTM)0.14
EY4.02%
EPS(NY)0.16
Fwd EY4.47%
FCF(TTM)0.19
FCFY5.44%
OCF(TTM)0.2
OCFY5.8%
SpS0.98
BVpS0.9
TBVpS0.52
PEG (NY)1.15
PEG (5Y)3.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 14.35% | ||
| ROCE | 14.74% | ||
| ROIC | 10.17% | ||
| ROICexc | 19.29% | ||
| ROICexgc | 49.35% | ||
| OM | 16.28% | ||
| PM (TTM) | 13.24% | ||
| GM | 30.15% | ||
| FCFM | 19.33% |
ROA(3y)10.19%
ROA(5y)11.09%
ROE(3y)15.94%
ROE(5y)16.96%
ROIC(3y)11.05%
ROIC(5y)11.82%
ROICexc(3y)18.61%
ROICexc(5y)21.89%
ROICexgc(3y)45.08%
ROICexgc(5y)47.31%
ROCE(3y)16%
ROCE(5y)17.06%
ROICexcg growth 3Y-5.51%
ROICexcg growth 5Y2.67%
ROICexc growth 3Y-14.36%
ROICexc growth 5Y-5.07%
OM growth 3Y-8.03%
OM growth 5Y-1.33%
PM growth 3Y-10.95%
PM growth 5Y-4.35%
GM growth 3Y-2.19%
GM growth 5Y-0.07%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 34.04% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 14.75 | ||
| Cash Conversion | 102.85% | ||
| Profit Quality | 145.97% | ||
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z | 6.85 |
F-Score6
WACC11.24%
ROIC/WACC0.9
Cap/Depr(3y)46.82%
Cap/Depr(5y)64.77%
Cap/Sales(3y)1.79%
Cap/Sales(5y)2.47%
Profit Quality(3y)108.74%
Profit Quality(5y)104.82%
High Growth Momentum
Growth
EPS 1Y (TTM)13.15%
EPS 3Y2.82%
EPS 5Y6.73%
EPS Q2Q%24.27%
EPS Next Y21.53%
EPS Next 2Y13.87%
EPS Next 3Y12.35%
EPS Next 5Y11.67%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y13.16%
Revenue growth 5Y8.91%
Sales Q2Q%0.51%
Revenue Next Year-0.62%
Revenue Next 2Y2.66%
Revenue Next 3Y4.36%
Revenue Next 5Y5.49%
EBIT growth 1Y1.12%
EBIT growth 3Y4.08%
EBIT growth 5Y7.46%
EBIT Next Year31.49%
EBIT Next 3Y15.15%
EBIT Next 5Y12.08%
FCF growth 1Y102.52%
FCF growth 3Y9%
FCF growth 5Y12.12%
OCF growth 1Y77.1%
OCF growth 3Y6.1%
OCF growth 5Y8.66%